ISLAMABAD, Oct 10 (Alliance News): The government has officially terminated power purchase agreements with five Independent Power Producers (IPPs), a move that Prime Minister Shehbaz Sharif stated will provide Rs60 billion in annual relief to electricity consumers, and save the national exchequer a cumulative Rs411 billion.
During a federal cabinet meeting on Thursday, Prime Minister Shehbaz Sharif explained that the decision to end these agreements, which were negotiated between the Task Force on Power Sector Reforms and the IPP owners, is part of efforts to reduce the burden of capacity payments and lower electricity prices for the public.
“The owners of five IPPs have agreed to terminate the contracts, putting the national interest above their own.
This is the first raindrop that will soon green the entire region,” said the Prime Minister. He acknowledged the task force, President Asif Ali Zardari, Army Chief General Asim Munir, and PML-N leader Nawaz Sharif for their efforts in securing this outcome.
The IPPs whose agreements have been terminated include Rousch Power, Saba Power, LALPIR, HUBCO, and Atlas Power.
While the government will transfer ownership of Rousch Power to the Privatisation Commission for onward privatisation, the other four IPPs will maintain their ownership, with no future charges to be paid by the government.
The Prime Minister further stated that electricity tariffs will